In simple words, payment gateways are a means of receiving or making payments. It gets the payments from your customer and settles them for you. It is a software that makes it possible to transfer transaction data from the merchant to the acquirer’s bank
The entire payment process has back parties involved to make payment conversion possible. Whereas, the payment gateway acts as a means of transmitting the order. The main parties are, the issuing bank > payment processors, for example, card processors > payment gateway/aggregator themselves > contract bank > supply bank.
Payment gateways first capture the amounts paid to the customer in the Nodal Bank account and then they are settled at Merchants Bank as per the pre-set settlement period. Payment gateways even facilitate buyer and seller protection by being a mediator between both and they have a dispute department for themselves
Provide multiple payment options to your customers and allow them to pay in any way they want. Such as, credit card, debit card, wallet, QR code, UPI/Bhim, etc. With the help of it, interested customers can make online payments from their devices like computer, laptop, smartphone, etc. from anywhere in the world, border and distance.
How does the payment gateway work?
The payment gateway processes the payment from the customer to the merchant which includes several back parties in it, according to the payment method chosen by the customers. The flow goes like this:
After the customer selects the product/service on the website, he goes to the shopping cart and enters the basic required details like name and and after that, they will go to the checkout page by clicking on “Pay Now” (or any other equivalent option or button depending on the website) and fill in Required details there like name, email id, contact number and order id created on payment gateway
Contact information, address, etc. to make delivery possible.
The client chooses the payment method and, accordingly, the page is redirected to that server in a secure manner by the payment gateway. The payment request is sent securely to the customer’s payment place after the payment gateway has approved the payment.
• On the back, an authorization request is sent to the customer’s bank which means it checks if there is a balance available and also waits for the authorization to debit the same.
• After receiving the authorization from the bank, the same amount is debited and transferred to the payment gateway and in the pre-set settlement period to the merchant bank account. If the response from the bank is negative, the customer receives an error message.
• The customer receives an email to notify the success of the transaction and the request being submitted.
Payment Gateway Security
The most important thing is that [payment gateway Qatar]((https://sadad.qa/en/) are those means that allow the transfer of funds in a safe and secure manner as they may also include confidential details that may be at risk with the spread of prevalent online scams.
So for both merchants and customers, the security aspect is important because sensitive payment information and funds are included in the process. Therefore, care must be taken that the payment gateway of their choice follows appropriate security standards such as:
Following PCI DSS security standards protects cardholder data from any kind of sensitive information data leakage and online payment fraud. Thus, if the payment gateway is PCI DSS compliant then it is
• If an encryption approach such as AES 256 encryption is followed, the data sent is safe and secured. It is a way to convert the original message into ciphertext, which must be so complex that it is difficult to understand and even difficult for a hacker to decrypt.
• The ‘S’ in the ‘https’ web address means the website is secured.
The importance of a payment gateway
• Receive payments online Many payment options are possible
• Manage your business with the help of a merchant dashboard. And everything related to the payments received through this dashboard to plan and improvise the business further on the basis of key analytics, graphic representation and other functions.
• Even when there is no website, you can receive payments online using the payment / home links
• Resolving problems between sellers and buyers with the Dispute Resolution Center
• Access to resolution and support
• Integration and interconnection with every online payment service provider from banks to wallets to others
• Gain PCI DSS compliance and make secure payment conversion possible
• From the top, the online payment process looks very simple as it starts from the customer to the PG to the merchant; However, in the background, it goes through too many stages for authorization, authentication and payment recording, all the linking and approvals at each stage are so complex that you get it done ready by the payment gateways
If you decide to build your own portal instead, the entire technical development part will take a lot of time, money and energy. These days payment gateway offers easy and fast integration resources and services; With easily available plug-ins and SDKs.
• PG will take care of the approval part as well and make sure that the authority to collect payments from anywhere does not go to any scammer.
Payment Gateway is a way to easily transfer payments in a highly secure manner from anywhere in the world making global business access possible also at any hour of the day.
How to use the payment gateway?
The payment gateway can be integrated with the website/app as a checkout and payment button. It is a technical process that these days payment gateway companies provide ready-made extensions, software development kits and modules which makes the whole thing very easy.
Don’t worry if you don’t have a website, you can still offer payment service to your customers through payment links and master links. These links are copy/paste something and can be sent to customers through any mode like messaging, chatting, social media etc.